Liquidity Services, Inc. · NASDAQ:LQDT
Liquidity Services — Q4 FY2020 Earnings Presentation
22 slides from Liquidity Services's earnings presentation, December 2020
Slide 1: Investor Presentation Fourth Quarter and Fiscal Year 2020
Investor Presentation Fourth Quarter and Fiscal Year 2020 ©Liquidity Services, Inc. All Rights Reserved. 1
Slide 2: Forward-Looking Information
Forward-Looking Information This document contains forward-looking statements. These statements are only predictions. The outcome of the events described in these forward-looking statements is subject to known and unknown risks, uncertainties and other factors that may cause our actual results, leve
Slide 3: Who We Are
Liquidity Services is a global solution provider in Who We Are the reverse supply chain continuously building the world’s largest marketplace for business surplus Manage, value, and sell Maximize return with Optimize and execute We… surplus across the broadest buyer base, in surplus management globe
Slide 4: The Industry Leader in the Reverse Supply Chain
Trusted by over Experienced in over 14,000 600 asset categories and all clients worldwide asset conditions The Industry over Proven Leader in $8 billion multichannel marketing & sales strategies for in completed the Reverse transactions B2B and B2C Supply Chain Client include +130 +3.7 million Globa
Slide 5: Our Purpose: Sellers, Buyers, Planet
OUR PURPOSE: To intelligently capture the enduring value of surplus, benefiting our sellers, our buyers, and our planet. SELLERS BUYERS PLANET For enterprises with used, idle, For organizations and consumers For the planet’s natural resources, or excess assets and inventory: looking to achieve busin
Slide 6: Delivering Maximum Value to Sellers
Delivering Maximum Value to Sellers SERVING THE BROADEST BASE OF INDUSTRIES Aerospace Consumer Brands Fast-Moving Mining & Large & Defense & OEMs Consumer Goods Construction Automotive Electronics Government Retail Manufacturing Manufacturing Industrial Transportation Biopharmaceuticals Energy Manuf
Slide 7: Providing Superior Buyer Experiences
Providing Superior Buyer Experiences BUYERS WE SERVE Online/Offline Retailers Resellers Distributors Refurbishers Wholesalers Small Businesses Flea Markets Recyclers Superior Product Quality and Information OUR VALUE Large volumes and recurring flows of products; refurbishment services PROPOSITION to
Slide 8: Market Opportunity
Market Opportunity * $50 Billion* $3 Billion Retailers & OEMs U.S Public Sector (Source: Appriss Retail 2018) (Source: Company Data) $8 Billion $20 Billion $48 Billion Energy Industrial Capital Assets Transportation (Source: Manfredi & Associates 2015, ACT (Source: Company Data) (Source: Company Dat
Slide 9: Macro-Trends Expanding Our Opportunity
Macro-Trends Expanding Our Opportunity e-Commerce Growth Technology Innovation • Increased demand for digital, no-contact • Product obsolescence and shorter product solutions driving more opportunities with lifecycles sellers and buyers • Greater focus on compliance & transparency • Strong online gr
Slide 10: Our Business Model
Our Business Model Compelling Model ▪ Online, no-contact and self-service solutions ▪ Diversified products, services, and customer mix globally ▪ High-volume recurring revenue ▪ Value-added managed services ▪ Additional services beyond selling assets to create higher-margin revenue streams ▪ Network
Slide 11: GovDeals Segment: Capitalizing on Market Opportunity
GovDeals Segment: Capitalizing on Market Opportunity Over 14,000 government agencies have used our self-service model for low-cost, highly effective surplus sales • Governments seek streamlined costs, GovDeals Segment GMV Trendline reduced space, digital and green solutions, and improved compliance
Slide 12: RSCG Segment is Driving Long-Term Growth
RSCG Segment is Driving Long-Term Growth RSCG delivers 16 consecutive quarters of GMV growth; 33% GMV growth in Q4-FY20 RSCG Segment GMV Trendline • Q4FY20 benefitted from: – Pent-up supply of consumer returns and unsold product during the Spring related to COVID-19 business restrictions $52.3 – Ret
Slide 13: CAG Segment Diversified Seller Base
CAG Segment Diversified Seller Base Global markets still restricted but pipeline is growing through seller and buyer demand CAG Segment GMV Trendline • Last nine months of FY20 were impacted by global pandemic: – International economies are heavily restricting travel and limit facility visits, imped
Slide 14: Machinio Overview
Machinio Overview • Machinio aggregates > 2 million global used equipment listings worth $37+ billion and generating 15M+ site visits and 1.1M qualified seller leads annually • Subscription model, 1-year term, paid upfront, 90%+ recurring with ~3,000 subscribers • MachineryHost provides more than 3
Slide 15: Machinio Value Proposition and Rationale
Machinio Value Proposition and Rationale ✓ Entry into new verticals ✓ Expands Liquidity Services buyer base ✓ Complementary solution for equipment sellers ✓ Rich source of data on equipment, buyers and sellers ✓ Cross selling opportunities ©Liquidity Services, Inc. All Rights Reserved. 15
Slide 16: Financial Results
Financial Results ©Liquidity Services, Inc. All Rights Reserved. 16
Slide 17: Q4 and FY20 Consolidated Results
Q4 and FY20 Consolidated Results $ millions Gross Adjusted Merchandise Revenue Gross Profit(1) EBITDA Volume 113 9.0 9.0 640 620 110 226 206 197 33 158 59 56 29 -0.8 -1.2 19 20 19 20 19 20 19 20 19 20 19 20 Three 19 20 19 20 Three Fiscal Year Three Fiscal Year Fiscal Year Fiscal Year Three ended Mon
Slide 18: Diversification By Pricing Model
Diversification By Pricing Model GMV Mix By Pricing Model Purchase Purchase 23% 21% Consignment 77% Consignment 79% Purchase Consignment Self-Directed Consignment Purchase Consignment Self-Directed Consignment FY19 FY20 ©Liquidity Services, Inc. All Rights Reserved. 18
Slide 19: Diversification By Segment
Diversification By Segment GMV Mix by Segment RSCG 25% RSCG 29% GovDeals GovDeals 51% 53% CAG 24% CAG 18% FY20 FY19 ©Liquidity Services, Inc. All Rights Reserved. 19
Slide 20: Diversification By Segment
Diversification By Segment Revenue Mix by Segment Machinio 2% Machinio GovDeals GovDeals 4% 16% 15% RSCG CAG 56% RSCG CAG 14% 66% 27% FY19 FY20 ©Liquidity Services, Inc. All Rights Reserved. 20
Slide 21: Reconciliation of Financial Data
Reconciliation of Financial Data ©Liquidity Services, Inc. All Rights Reserved. 21
Slide 22: Investor Relations
Investor Relations [email protected] ©Liquidity Services, Inc. All Rights Reserved. 22